Due to the geography of the Royal Mile and Edinburgh Castle the Royal Mile was practically all there was to Edinburgh until roughly 200 years ago meaning everyone lived on top of each other. The tall tenement buildings are unique and like something out of Harry Potter (JK Rowling wrote some of Harry Potter in Edinburgh so maybe it inspired her). Also it means that all the history happening within more or less 1 mile. You can feel the history all around you. It is one of my favourite places in the world!
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